Written answers

Thursday, 14 July 2016

Department of Transport, Tourism and Sport

Bus Services

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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265. To ask the Minister for Transport, Tourism and Sport his understanding of section 52 of the Dublin Transport Authority Act 2008 regarding the tendering of bus routes. [21888/16]

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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​The organisation, financial compensation and award of public transport service contracts is governed by EU law, known as Regulation 1370/2007.  Relevant provisions of the Dublin Transport Authority Act 2008 (as amended) provide the necessary Irish perspective to this overarching EU framework and section 52 of the Dublin Transport Authority Act 2008 provides the statutory basis for the direct award of public service contracts by the National Transport Authority (NTA) to the three CIÉ subsidiary companies.

Industrial disputes arose in 2015 in relation to the NTA's decision to tender out a small percentage of services previously directly awarded to Dublin Bus and Bus Éireann. As part of the Labour Relations Commission's brokered 'terms of settlement' in May 2015, my Department committed toward examining section 52 as regards some concerns expressed during these disputes by trade unions on perceived ambiguities in the text of the section. These perceived ambiguities included, for example, a concern that the legislation might lead to compulsory tendering of all routes in the future.

The Deputy may be aware that, in December 2015, my predecessor wrote to the trade unions providing the report that had been prepared by the Department (in accordance with the commitment arising from the LRC terms of settlement) considering the issues and taking account of advice received from the Attorney General. The Department's consideration essentially concluded that there was merit in amending the legislation to address perceived ambiguities but that any such amendments would continue to reflect EU law and the current statutory powers of the NTA to determine the appropriate mix of directly awarded and competitively tendered bus services.

I have recently received a briefing from my Department on the matter and I expect to decide shortly on the appropriate way forward.

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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266. To ask the Minister for Transport, Tourism and Sport the number of Dublin Bus and Bus Éireann routes that are profitable. [21889/16]

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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​Dublin Bus and Bus Éireann receive Exchequer funding in respect of public service obligation (PSO) services. PSO services are public transport services provided in the general interest that another commercial operator would not assume or would not assume to the same extent or under the same conditions without reward.

Exchequer funding is made available to the NTA to allocate to the transport operators as it determines and in line with the public service contract it has in place with each operator. These contracts specify the services to be provided by the operators. In the context of the Deputy's question, it is important to note that the contracts are in regard to the provision of a network of PSO bus services. This network requirement is a common feature of contracts of this nature across the EU.

In that context the specific route level analysis sought by the Deputy is not readily available. I have however directed your question to the NTA for direct reply in the context of any network level analysis that might be available.  Please advise my private office if you do not receive a response within ten working days.

Of course, in addition to their PSO work, both bus companies also operate commercial services which are not funded by the Exchequer and which are subject to normal competitive pressure from other operators. In the case of Dublin Bus these services primarily relate to airport express and tourist related services, while Bus Éireann operates an extensive inter-urban Expressway service which is completely commercial and receives no Exchequer funding. The performance of these routes is a commercial matter for the companies concerned.

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